Policy bazaar is a recent listing and there was a lot of buzz post listing. IPO was at 980 per share and stock price hit an all time high of 1470 on second day of listing i.e on 17 Nov 2022. After that it has been all downhill and stock price made low of 356 but it consolidated between levels of around 370-400 for many trading sessions and started an upmove which faced resistance at 480-500 and stock price corrected to post a higher bottom at 390 and again started moving up and posted a fresh swing high of 545 which was its 200 dema and corrected exactly from there. On retracement from here it took support at 480-500 and now seems to be attempting to move up, but still remains below its 200 dema which is currently at around 538 and is flattening out from earlier declining trajectory.
Overall there seems to be good early signs of some kind of bottom formation, though the verdict still is not confirmed.
On the bar chart there is a lot of clarity about where resistances were on way up and how this same resistance zone offered support during the latest decline.
The problem with these kind of structures is that there are a lot of guys stuck at higher levels and that comes around as resistances if we see the left side of chart where each higher level can act as a resistance. However if this were to take the form of a rounding bottom we could be seeing a very early stage rounding bottom. I personally am not too comfortable buying when stock is below 200 dema and hence it remains under my watchlist
disc: no positions. posted only for academic purpose to see how this one plays out going ahead. It though remains on my watchlist of stocks for buying if some positive structure emerges.
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